Financial literacy is crucial for children from an early age, and parents can teach them about money management by setting good examples. Children are keen observers, and teaching them how to manage their money creates healthy habits from an early age. An allowance can be a powerful learning tool, as it allows children to manage their own money while still having guidance if they fail.
When children hit the elementary or tween years, they have a better understanding of how money works and can set them up for long-term success. To teach kids about money, parents can have conversations, explain how money is earned, explore the difference between need and want, set savings challenges, involve them in the weekly shop, and talk about different ways to pay.
To teach children about money and managing their own finances using games, activities, and pocket money, parents should introduce the value of money, emphasize saving, introduce them to investing, encourage a summer job, introduce them to credit, and consider a Roth. Sharing positive money stories is an easy, casual way to help normalize thinking about and discussing financial planning.
Incorporating money into daily life, such as grocery shopping, comparing prices, and letting children participate or watch when you pay, can help teach them about money. Setting limits on mistakes and offering rewards, such as bed-time stories, holiday activities, and hobby classes, can also help teach children about money.
In conclusion, teaching children about money management is essential for developing healthy habits and setting them up for long-term success. By introducing the value of money, emphasizing saving, investing, and incorporating rewards into daily life, parents can help their children develop a strong foundation in financial literacy.
📹 8 Money Lessons Rich Parents Teach Their Kids💰
Are you setting your kids up for financial success or a lifetime of struggle? Dive into these 8 essential financial principles that …
How parents teach their children about money management?
To teach children financial understanding, it is essential to show them coins and notes in their purse or wallet, discussing their sizes, colors, and numbers. Explain the origin of money, as cashless society often leads children to believe supermarkets are the sole source of funds. Show them your payslip and explain how you found employment. For older children, examine deductions from gross pay and their potential uses.
Explain the difference between needs and wants, contrasting daily necessities like food and clothing with items they might want but don’t need. This helps introduce the concept of saving and the importance of restraint in spending. It also helps them understand that sometimes, it may be difficult to afford everything everyone wants.
Is it important to teach children how to manage their pocket money?
Developing financial literacy from a young age helps children develop responsible money habits and attitudes for later life. Managing pocket money is a great way to start developing a sense of responsibility and independence. The amount of pocket money depends on your circumstances and reasonable expectations. As long as your child understands the amount and frequency, they can learn how to use the money effectively.
Is it important for parents to teach their children to save money?
Saving money is a crucial life skill that can set children on a path of financial responsibility and independence. Teaching children to save money early helps them understand the value of money, which is a limited resource they need to manage carefully. This knowledge can help them make better spending decisions and avoid debt and overspending later in life. Additionally, saving money helps develop patience and delayed gratification, which are important skills for success in various areas.
Teaching kids about the importance of saving money also helps them achieve their goals. Having a savings plan in place helps kids stay focused and motivated, teaching them the value of hard work and persistence. By setting achievable goals and working towards them, children can gain a sense of accomplishment and a sense of accomplishment.
How can parents teach their children to manage their finances?
Providing children with an allowance can effectively educate them about financial literacy and money management. By associating the allowance with age-appropriate responsibilities, children can gain a deeper comprehension of the interconnection between labor, exertion, and monetary compensation.
How do I teach my child to be responsible for money?
Teaching preschoolers and kindergarteners about money is crucial for their financial future. It is not too early to start teaching them about money, as they are already old enough to count and have seen parents spend money. To give them a head start, use a clear jar for their savings, set an example with your own money habits, show them the importance of saving, and how opportunity cost works. Instead of giving allowances, focus on commissions, avoid impulse buys, stress the importance of giving, and teach them contentment.
By teaching them about money, they will be better equipped to navigate the world of money and make informed decisions. This is not only a professional job but also a valuable life skill for both parents and children.
Why kids should be able to manage their own money?
Teaching children to manage their money is crucial for their preparedness for adulthood. Proper money management encourages them to build habits like saving, spending within their means, setting financial goals, and making financial plans. These habits will enable them to make large financial investments in the future. However, only seven US states require high school students to take a personal finance course before graduation. Parents play a crucial role in developing financial responsibility, as many children don’t learn how to manage their money before they reach the real world.
Promoting financial literacy at a young age can help children grow up with more confidence in making financial decisions. Children can start learning money management skills as young as three years old, and it is suggested that certain money habits are set by age 7. While not teaching interest rates or complex budgets, teaching them budgeting, delayed gratification, and saving can help them understand the value of money and its potential uses.
Should parents give their children an allowance and teach them about managing money?
T. Rowe Price’s study suggests that children with allowance money feel more confident in managing their finances, spending decisions, and the value of money. They also learn from their mistakes and feel more knowledgeable about future investments and spending decisions. Parents are advised to have children earn their allowance money to increase their personal investment. However, if parents opt for a “no strings attached” approach, consequences for money mismanagement should still be in place.
According to Lewis Mandell, a professor at SUNY-Buffalo, having a childhood allowance doesn’t necessarily improve a high schooler’s understanding of money. Teens who received allowance money did worse on financial literacy tests than their peers, especially if their allowance wasn’t tied to chores. Mandell argues that giving a child an allowance instead of money when needed may limit valuable conversations parents have with their children regarding money and budgeting.
How can parents encourage their kids to save money?
Parents can help their children save by introducing the concept of budgeting and distributing pocket money in lower denominations. By the age of seven, most children understand how money works and develop their attitudes towards it. In Singapore, children typically start handling their daily allowance at primary school. To encourage prudent spending habits, parents should teach their children its value as soon as they can count. By implementing these strategies, parents can help their children kick-start their lifetime savings habit and help them develop a strong financial foundation.
How to teach money management to children?
Educating young people about money management is crucial for their financial independence. It involves teaching them the value of money, emphasizing saving, investing, and promoting summer jobs. It also encourages them to consider credit, a Roth IRA, budgeting, and staying invested. Many regret not learning these fundamentals sooner, as they can give them a competitive edge in the workforce. However, many young people are not receiving the necessary education in financial independence, such as budgeting, investing, and saving. In 2022, only 23 states required students to take a personal finance class to graduate from high school.
How do you explain money management?
The term “money management” encompasses a range of financial activities, including but not limited to budgeting, investing, saving, and goal-setting. It entails the identification of minor expenditures, the selection of a concise budgetary timeframe, the formulation of contingency plans, and the utilization of a budget document in Microsoft Word, as provided by the Federal Trade Commission.
Is it good to teach children about money?
The inculcation of financial literacy in children facilitates the acquisition of the requisite knowledge and competencies to effectively navigate their financial affairs. Frequently, enhanced financial management is observed as a consequence of parental guidance and the early assumption of responsibility for spending and saving.
📹 10 Things The RICH Teach Their Kids About MONEY
Here you will learn the difference between Rich Parents and Poor Parents and what they teach their kids about money.
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I was homeless, got into drug’s went to prison and then I got to know Jesus and he changed my life…Heaven came through for me in my finances too, getting $36,000 in 2months . I can support God’s work and give back to my community. God is absolutely more than enough! Now I have a new identity and a child of God.
Yes.☺️☺️ Teaching kids about money is important.💡💡 Assets over Liabilities.💸💸 Financial skills matters for our kids.💯💯 Empowering our kids financially.💪💪 I want more.🫰🫰 Teaching my kids to earn their success and make their own money.😎😎 Infinite Money 💎💎 Let’s empower our kids to see endless possibilities.🤝🤝 I subscribed.🔔🔔 Wealth is something earned through dedication and perseverance.🙌🙌 Lead by example.🫡🫡 Knowledge is Power.🤓🤓 Our children are the next generation of wealth creators.🔑🔑 I stayed until the end.🤗🤗
Summary of this article: 1) Rich Parents Teach The Importance of Money. 2) They Teach The Difference Between Assets and liabilities. 3) How to manage their money(include kids). 4) Teach different ways to earn money. 5) Developing productive habits. 6) No One Owes You Anything. 7) Social and influence skills. 8) Delayed gratification(patience). 9) There is ALWAYS More Money. 10) The Best Way To Make Money Is It Help Others. 11) Bonus: They understand they can’t know everything. Surround yourself with people that know more than you… Gift: Option to join “The Social Influencers Academy” that can teach you how to build a successful YouTube website. AMAZING INFORMATION IN THIS article!
What we NEVER LEARN IN SCHOOL… – How to do a private budget – How to fill out loan applications – How to manage credit correctly – How to do your taxes – How money works – How to invest in real estate – How the stock market works – How to start a company – How the legal system works (your rights) WHY ARE WE NOT TAUGHT THIS AT SCHOOL???
1) Teach the importance of money 2) Teach the difference between assets and liabilities 3) How to manage their money 4) Different ways to earn money 5) Developing productive habits 6) No one owes you anything 7) Social and influence skills 8) Delayed gratification (patience) 9) There is always more money (for the things we want, our job is to go and get it) 10)The best way to make money is to help others (resolving people problems) (BONUS) 11) They understand they don’t know everything
My dad was rich but I still have no idea why money was important to him. He never spent it except on investments, houses (which he also made into investment), and nice cars (which he viewed as important to showcase to others including clients that business was going well.)We went only went on one vacation while my parents were married (first 12 years of my life). His life was incredibly stressful due to his drive to dominate his field (again no clue why since he never used the money, never got to spend time with his family (was constantly traveling for business) and ended up destroying his marriage). Luckily he found a woman equally obsessed with money but okay not spending it all who apparently doesn’t mind his lack of attentiveness.
Many poor families, especially Asian families tend to have many kids. They think that having many kids are good investments because when they get old, their kids will take care of them. However, the reality is that they can’t afford all of their kids to have a good quality of life such as healthy eating, healthy environment, and higher education. One of the examples is that my parents keep asking my siblings and me $. It is sad.
My father taught me and he was not rich. He said pay my housing first, do not buy a car. Do not get pregnant unless 35, and married 2 years, and only one child. I obeyed him, but I did buy car, had one child at 37, after 10 years of marriage, and I worked, and retired with pensions and SS. I help non beggars.
My dad is really smart with money and I’m learning from him everyday about investing, being frugal, stocks, real estate, etc. I’m very thankful for that and because of him I have money for college, and for my future. Don’t get me wrong, he doesn’t give me money or get me gifts, or like in the movie “clueless”, Cher says “you think I’m just a ditz with a credit card!” Because he doesn’t do that for his kids, he didn’t want us to grow up spoiled and I sometimes feel sad because I like expensive things, but he knows I’ll be happier if I work for stuff. Sure everyone in my family had a car (he has a Tesla, the rest of us have cheaper cars), we have a nice house, and we go on multiple vacations a year, but I know I’m not spoiled. Instead I’m more fortunate, but his teachings help me understand that I can have that for my family one day if I’m smart about it.
My parents taught me many of these lessons, not because they were rich, but because they were raised during the Great Depression and then passed these lessons to us kids. I didn’t understand at the time, but I followed these lessons as I went from one job to another. First the lessons helped me survive from one job to another, until one day I woke up and discovered I didn’t need to work, for my assets were doing all of the work.
There’s actually a caveat to ‘rich people talk about money’ and that it is more focused on how they talk about Money. Growing up Money was always quite negative, but was talked about ALOT – therefore it created more negativity. The trick that the rich do is they talk about how money works for them as opposed to working for Money. That’s what I have learned from the sidelines.
This kid is right. You want to be a rich man? You have to learn from the rich. They work hard and teach their young at a young age about finances. I wish all the regular people knew about this article. My rich father taught me everything and helped me buy property to rent. That helped me to invest around 40k. Don’t be poor and look rich, be rich and look poor because you invest. He also gave me a job at his firm to teach me how to feel poor and appreciate the ins and outs of his world. We so smart.
A very good, older friend of mine died recently. I knew he was smart with money, but learned much more after his death. His principal was, live off 50%, give 10%, save 40%. He was in his fifties. Young, but his widow is still well set since he did this his entire working life. He also recognized his children’s needs and wishes, and bought a hobby farm when his children were still young. All four of his kids worked on the hobby farm and as young as eight years old and were filling out time cards. Great family, smart kids! I think you mean “instill,” not “install.” Pretty much the same thing though. I am prone to what you get into at about 12:20, feeling guilty or not charging what I should for my services.
Money brings your brain happiness. Having friends and family make your heart happy. It’s also important to work on relationships and its also about who you make friends with. Making friends with someone who constantly makes poor choices wount have a good effect on your choices because it can influence you too. Making friends with successful poeple you can learn from, both of you can learn from each other about success . Relationships are important. And also giving to othere helping them becoming successful once they are successful they would do anything to help you out in anything you’re struggling in. Thank you. (I’m 14)
This article is excellent: so many hugely valuable life lessons in a 15 minute presentation! The only thing I would add is that you should teach your kids to learn to develop a really strong vision of their future that acts as the emotional engine to drive them on through the hard times. In my experience this is the main characteristic that separates the mindset of the entrepreneur from the staff that work for them .
I felt like im one step ahead of anyone in my class because i have this thing called financial literacy so i wouldnt care too much anymore about being competitive in getting high grades. I can achieve that without making loud moves. Being financially knowledgeable is like a superpower and the cool thing is, not everyone knows about it
I spent a lot of time around rich teens and college kids. And plot twist…they didn’t demonstrate knowledge of any of these things. They were just like all the other dumb young kids and acted spoiled. It doesn’t matter how you were raised. You can be smart with your money or make foolish choices. It’s a personal choice. NEVER gauge your self worth off how much money your parents had or even how much money you have. Also never put people who have more money on a pedestal. Life lessons.
As a kid I was not taught about how money worked directly,but it was modeled. My parents where wise managers of there resources and did not buy things they could not afford. They had good habits of saving and planning for the future and stayed out of credit card debt. It is important to teach our children about money and how it works. Although our attitudes and actions often speak louder than words. I fell into the traps many do with overextending myself and acquiring credit card debt. BUT I knew full well it was a bad decision because I was raised differently. After living with the consequences of debt for a season of life. I knew I needed to get back out track and manage my finances as I learned and “caught” from Mom and Dad. Modeling is far more important than many of us realize. Your kids are perusal your habits as much as or more than they are listening to what you “preach”.
I was talking to a former millionaire that was telling me money isn’t everything. So sad. He believes this because he is now poor, or “broke” as he calls it. Says money means nothing. Funny how perspective changes when you have very little. Poverty mentality is the biggest disease out there. It even affects the former rich!
This is important advice, This article is important, The poor spend there money on things that are not important. ( The poor are spending their money on “liabilities.”), But the rich have their “Assets” and only buy the things that are IMPORTANT. Example: Renting a 1,000,000 mansion: Asset💸 “Because it brings money into your pocket every month/year or day.” Buying a 1,000,000 to live in: Liability❌ “Because it takes cash flow out of you money every month/year or day.” (Edit: I’m a child)
I’ve been searching Youtube articles for a full year now trying to find someone who can actually teach from the wealthy side of how to build wealth. I need, as you say, someone who can actually solve problems and is fearless enough to pull back the curtain to teach step by step, nuts and bolts of how to. All I’ve been getting is fluff, not quite the full answer, because they are scared to give too much away. There is always more money, most people come from a place of scarcity. Thank you so much for your article, transparency and genuine willingness to help others.
My mom since a young age told me “never keep the money..it will love its value” So she converted pesos (Mexican money) into dollars, for a few time We were a bit poor for some years but now the dollar because more valuable and it became 22 pesos instead of 19 or something, so yea now we really doubled a lot of money (it’s just a tip lmao)
The irony about having money is the more you have the less you waste! When I purchased my first car it was with 0% interest. I paid from my monthly salary just for convenience, but I had the means to buy the car out right because of all the savings I had accumulated since I was a kid. So when I was asked to pay towards insurance just in case I lost my job, I wouldn’t lose the car (that’s how the garage makes their money) I could afford to refuse this and thus save money. You don’t have to be mega rich, but a “put away for a rainy day ” supply always saves you from slipping into debt.😉 This article is all about common sense and good money management. If you never make millions one thing for sure you’ll never be in the Poverty Pit! 😁
The wealthiest people I know came from poor families. They were so hungry for money while rich kids never had that hunger in my experience (except certain religions that push wealth and success). My parents were rich but never taught me any of this. My husband parents were rich but never taught us this. Maybe Accounting parents teach this. ….. not all rich people are the same. ….. this article is generalizing a concept that does not exist just to convince poor people that they are lacking something.
I can see the different mindset of a poor family. My parents were poor when I was little and I had a lot of negativity towards money. I grew up and changed my mindset but my younger sisters didn’t. They think people owe them things all the time, they aren’t full of gratitude and are very stingy with their time and money.
Both my parents went through the depression and taught me to be frugal with money, however neither one knew how to make money other than from pay check to pay check. I never developed the habits that are needed to make money. I have learned so much, but I am also 55 years old now. Not a lot of time left to make money “over time.” I can still make some, but getting rich will take some creativity at this stage. Everyone needs a mentor even at my age. Not a whole lot of people around me that has any knowledge of making money. How can I find a mentor that doesn’t require so much money to help me?
Dude. The second step is a lie. Actually saving is bad because of inflation. If you store 100 dollars today. 20 years from now it will be worth 10$ and that why saving is bad, but what you spend on is bad and good. You spend money on real estate, then thats a good spening habit. Spending badly like buying 10 phones for no reason wont help you become richer.
I believe there is one more that should be added. You are the sum of the five people you associate with the most. Look at who your closest friends are. If they are the “live paycheck to paycheck type,” with no intention of bettering their financial future or even their personal growth, do not save or invest, watch television instead of reading books, and dismiss the dreams of anyone reaching for success…guess who you will end up just like?! Surround yourself with those who push you forward, not hold you back.
Its a great article and so on BUT all these articles always talk about how important is to SAVE in order to be able to INVEST. But unless you are a broker and have some specific financial education I don’t know where someone would invest and how could he know WHERE. Yeah.. yeah.. I know – there are articles about that topic also but you either have to have A LOT of money (which doesn’t take just a year as shown here as an example) or to be really really good in investing.
Rule No.1) You don’t have to work for anything, my child! We got money and we’re gonna pay you everything: from nice cars, to college admissions, etc. Just enjoy your life going on fancy trips, nice partys and driving nice cars and post it all over social media to let people know you were born with more than most will ever earn in their whole life! And dont forget to claim to be ‘selfmade’! LOL
I was not taught about money and as a kid thought that people who thinks about money, money, money are greedy, shallow bunch of pretentious sub humans. Not until I had kids did I realize that I needed money to give them necessities. People whose existence and confidence based on their wealth are never happy, but if you are poor and stealing, you wouldn’t have self dignity either. I have seen rich and powerful people from my father’s generation fell off their high horse and came to a sad existence, which even the rich and famous will end up. So don’t be too greedy.
Buying a house to live in is indeed an asset, not a liability. This is based on the financial principle that a dollar earned is as valuable as a dollar not spent. When you buy a house you pay monthly your interest and your maintenance costs, but when you rent, you pay rent. If the sum of interest+costs is smaller than what renting that property would’ve been, then buying that property is preventing you from spending extra money, or in other words, is generating you money. That’s why property and real estate is always in the asset side of companies balance sheet
When I was a kid, before I was a teenager, I wanted people to spend less money on food and beer so we can have money for decent clothing. As a teenager, worked on the weekends so I could by books that the library didn’t have and I bought my own clothes from thrift stores. Now I mostly eat food that I cook for myself, buy decent clothes, and invest half of my income by relocating from Los Angeles to Arizona, lowering the rent I would pay and I don’t have to park five blocks away due to overcrowded parking. I’m on my way to be financially independent by age 40 and then I’ll have more time to do volunteer work. 💪💪
I’ve been following Robert Kiyosaki for seven years and used to agree with his quote “Looking good but going nowhere” Now with the Instagram and Tiktok era I’m not so sure anymore. It’s easier to build up a following if you’re looking fly and on-trend. Then you can get brand deals and partnerships. I guess it just depends on what you do with your time and what path you want to take. The internet sure has opened up a lot of opportunities compared to the last 10-20 years when these books were written. But without These books and the author’s knowledge I wouldn’t have as great an understanding of money as I do now.
Patience is the big one. Vast majority of millionaires got rich over several decades, not inheritance/lottery/etc. Cut as much unhealthy spending as you can (alcohol, cigarettes, start cooking at home!), avoid stupid purchases (expensive clothes, gadgets, cars, I would put even pets in here but we are social creatures after all), save as much as you can and invest into your pension plan. Wait some 20-30 years, even while doing a regular job, and you will be rich. Paid off home mortgage, chunk of gold in your savings/pension accounts, normal functional car and free to do anything.
The poor are usually focused on survival. The rich are usually set up comfortable so they don’t have in the back of their mind they may be homeless if they get their hours cut. Ectect. This seems like a more opinion based presentation. Poor people work hard for what they have. It’s harder to get ahead and save if rent and everything else goes up but the pay does not. The bottom line is if you can work for yourself over getting a job that way you control your income and you are not at the mercy of a job laying you off or cutting your hours etc
If a house takes money out of your pocket every month, but you’re getting capital gains on that house which exceed the mortgage and other costs then it is an asset. In New Zealand we pay about 3% p.a on mortgages but on average the housing market goes up 10% per year… plus you would only have to rent elsewhere so you’re saving rent and earning capital gains.
One thing that I don’t understand in those kind of articles, I’m not from America, I’m from Europe, Romania. The minimum salary here is somewhere around $500 per month (before paying taxes, usualy 42% of that income). When people say in articles “let’s pretend those two make 10k a month, or 6k a month” Is that average in America? $6000 it’s enough for me and my family to leave somewhere around 18 months, and you guys can’t evolve from $6000 a month? Yeah I know, taxes, rent, car, and all that “nice stuff” we all have that here. If you have $1k a month in my country you’re way way above average. An apartment costs somewhere around 35-40k euro, used car cost lower than 3k euro. It’s hard for me to understand how you end up broke with 6k a month or 10k a month …. I have a friend in Canada, their parents make in total 17k a month and they’re broke, how is that possible?! Let’s suppose 5k is rent, 5k is food, 5k is expenses, but you still end up in profit. Someone can explain this phenomenon?
I know some rich children who think money is just a toy and that it is infinite. Not all rich kids know what it takes to be rich, I think that is a problem that some rich families have to face. I believe it is important to control your kid’s spending and help them understand what finances and money are, most although not all rich parents do this. Someone who will become rich and someone who will stay poor is more of a mental thing than a luck, although luck can help in some cases. I bet those children of wealthy families will be bankrupt by the next 20 years, or by the next generation at least.
No mention at all of the two biggest ‘invisible’ expenses that people have to learn to control in order to maximize financial success, especially when just starting out – Depreciation expense and Interest expense. Specifically, depreciation and interest on new or late-model used vehicles and interest on credit card balances. I’ll put it simply. Avoid both 100%. It’s easy to do and it doubles or triples your money available to save or to spend on other discretionary items.
Believe in yourself never give up Trust I AM which is in u which I AM is God research that n YHWH in our genome holding all things together trust in him not man he will provide through you as well master many things but first find things you can master then headstrong not giving up find a lucrative way to create wealth from your craft niche be patience which we all struggle with we give up before we begin our dream because we lost faith in ourselves because of the world perspective and people perspective around us we adapt these ideas seeing the result of 25 years in an office the answer not there for sure.. work is ok if must be but the goal is work for thyself and help others build not take be independence not dependant the our thoughts is our reality but we must know we can renew our mind this is spiritual not religious wisdom only from You Hey Wav Hey we must realized everything in the education system religious system is used to control masses of population of people from the true power within to create we are meant to create our own wealth stop giving all your money away trying to keep up invest take risk suffer is a part of it no other way failure is apart of success and without experience from life mistakes you can’t grow so be thankful that we have the breath to will manifest work these dreams into reality we must remember WE ARE Gods I was born in Detroit enough said but I had family ok one side other side wild im thankful for everyday i know the statistic foe me to even try i cant see life is very important but fragile we don’t have the control we believe i assure you we all end up always striving for more you see being content is the key wealth because you don’t need Everything you Can save our greed of things of vanity is what catch us money is your tool so put it in the right place eliminate negative thoughts meditate positive thought because our thoughts become our reality through our words we act on what we think so be careful many more demensions like 10 11 than the know for so go out the box trust I AM i know your life will change mine did I change my perspective i struggle as all as well humbly admit it for us to be misinformed of ourself powers and abilities were limited through the programming in all sectors to distract us off of being content the social media can be a big factor in the destruction of family God and our reality everything not fast i heard live fast die fast we let images get us off our path or like or fame which we warned about we know who controls the money why everyone confused because lucifer why because its a scamm only few see the true power you’ll lose for it be careful of your thoughts because we search for peace money is a tool to me i only have one God can’t have two the one creator overrides all why cause everything from him I seen heard the story of jen that put their faith in money over God I promise you its real seek ye first the kingdom of God which in in you which is the spirit of I AM feed him love him which is loving yourself have love compassion for others in need what more than enough is for others as well theses concepts only life can teach money stop it wisdom to know what to with it then all things will be added once you lose care for the worldly things you’ll receive them why because you love I AM over all things its a blessing to be poor but be be rich in spirit but its a curse to be rich in poor spirit rich but no pace poor but the peace of God within 🙏 we create wealth not wealth create us.
A parent with a spending addiction (mother) will kill the people around her. Addictions destroy. I am financially paying for her addictions. Thousands a month for private home care because she has nothing. She is penniless and I’m paying for her care. She killed my dad and now she’s killing me. Will have her in a nursing home soon. It is best for all. Don’t forget to sometimes people are Blessedt and the latter half of their lives not necessarily the former.
Thank you for this article. It’s very informative, and educational. Something one can definjtely apply. I have been raised in a single income household, and growing up, I have also developed this mentality from my parents. Now a solo parent, and I am doing my best to make sure to fix my finances and also teach my 11 y/o son how he can make himaelf financially literate, and break the system that I grew up with. Apart from education, being financially literate, regardless of age is also equally important especially for children of the new generation. Keep it up!
I really enjoyed this content & the animation took it to the next level! When I liked & sub’d the website’s title threw me off. I assume the target market for viewership is men & there’s nothing wrong with that. Only issue is I’m not a man sooooo…🤷🏼♀️ IDK if I’d be welcome here, but I’m gonna stick around anyway. So long as that’s ok?? 😬
Generally good article, but you need to look up the definitions of asset, liability, income, and expense. You’re blurring income statement items with balance sheet items. A bar of gold is an asset even if it doesn’t generate income. Same for a house. A car is also an asset, even if it goes down in value.
My grandpa is a self made multibillionaire while my dad has inherited lots of money instead of making it on his own. At 16 under my dads influence I spent about 200k in one year on designer clothes and it made me feel depressed. Now a few years later after living with my grandpa I won’t get extra meat in my chipotle cuz it’s too expensive but I’m the happiest I’ve ever been. My point is to be successful monetarily and enjoy your money, that money first needs to be respected and appreciated. If money only brings fun, can that temporary increase in dopamine really motivate you to make more money?
The information in this article was good info. My comment was simply, it was just strange that when the author illustrated the person who is wasteful and terrible with money credit in was a black person. There are many many white people that are in the same personal economic position as some black people. Now, no black people were not taught about money. At my age parent was fresh out of the south and all they knew was to work a job and try to keep a bill paid. The truth is that in this world there is an economic system that was designed by white people so that white people can be superior in it. When this started itnwas never their intention for black people to understand or used this system, our job was to keep working to support it. Unfortunately this leaves generations our black people not knowing about money, credit or interest, where white kids have taught the power of a dollar and leveraging their credit. One last thing, statistics say that the black household in America has the lowest family income of all the other races in this country, Hispanic, Asian, White. Check this out though, same statistics say that, black people spend more monety into the US economy than any other race in this country over 1.5 Trillion dollars a year. Now this whats the kicker, the number of black owned businesses in this country is lower than any other race in this country. So, that means we make the least amount of money, spend the most money, and its to their pockets not our own. So, there is a huge system in place, and its, Our ancestors built this country and its wealth with blood and tears for free, and now black people are the ones who are funding it, imagine if we could take that 1.
I just don’t get that owning a home is a liability? Isn’t it that if you are a renter, you are making your landlord rich? Yes, you have to pay the mortgage, taxes, insurance, upkeep on your own house, but isn’t part of one’s mortgage interest and property taxes are tax deductible? Plus, you are still building equity on the house you are living in. so, how could this be a liability? At least, the way I see it, the government is actually subsidizing homeownership because it creates jobs! Many so-called financial guru’s online are not sold on owning their own homes? Where do they live? Do they rent? I say, owning your own house is a Good kind of liability. We have to separate it from business investment kind of liabilities, right? I advice all my kids and grandkids to buy their own house, not just for equity appreciation, but also for pride of ownership. They won’t have a landlord who can increase their rent year after year, or kick them out if the owner decides to sell the house, or if they get foreclosed on, they can make improvements on it the way they want, etc. With the interest rate so low as it is, buying is the way to go. I pay about $1600.00 a month on mortgage, for a 3,500 sq.ft home. The rents in my are a during winter season (Florida) for this size home and location is over $5,000.00 a month. Now, why would I rent vs. own?
This was taught in school when I was growing up. They took it out? Money management was a must in grade school. So if was taken out of the education system it was planned. Seem like there really is an agenda to purposefully keep certain people ignorant. Class distinction in the institutional level then those responsible for this sham then claim to be more intelligent. Let see how that works out when your Monopoly money becomes worthless. From what I can tell it is real soon. True survival is based on living skills and survival in times when money is worthless. Money does not make you intelligent or wise. Just attracts false friends and those who want to use you for what you have and not who you are. Best get a good woman while you are broke, because when you are rich only gold diggers come your way. Bet that is not something the rich teach their children. Money is just a tool, problem comes in when it’s pursuit dominates your life. All in all the article has great advice. The more people know the better. Balance a must.
This is wierd… my dad has a well-payed job (he has the possibility to take out more money than what he needs) and yet he doesn’t teach me much about money. However I’ve only got to learn about that he is rich and that only the rich people in my class should be the ones to shame themselves for stating that they’re rich and showing off thier expensive items, while I will be the one to smile and just let them talk. However if someone asks if my parents are rich, I’ve been taught to say that my parents have enough to cope. Is this really the way a rich man is supposed to teach his son? Is this what I am supposed to do?
All good ideas but this list presupposes that people who are not rich don’t have these traits.. that they have some characteristics that prevent them from being rich… a good portion of rich people are that way because of the work and sweat of someone else… grandfather, parent, worker, or other entity that created the opportunities and advantages
to point 2) If I can´t afford buying the house immediately – as most poor people can´t (and it´s not exactly being poor here in Germany if you can afford to buy a house for about 300.000 € in average, sometimes rather more)) – it would cost me more to rent it to someone? at least in our case the rate for the credit would be lower than paying the rent for our flat, so I still think it is a good investment to buy a house to live in it?
Primary and secondary schools don’t teach you how to become CEO or start your own business because 1st you need to learn how to crunch numbers and understand what you’re reading (they do teach you about leadership). Most young people can barely do basic math or understand what they’re even reading half the time! How do you expect them to understand the stock market or the numbers behind them?? Most people don’t even know the importance of the equation y = mx + b, which is learned in middle school, nor its applications. If you’re gonna start your own business and you don’t know how to analyze numbers, well..good luck! And that’s just the business application of mathematics. There are other subjects in the S.T.E.M. field that can only be learned the right way in school. Physics, Chemistry, Biology, Engineering, Medicine, Pharmacology, etc… even if it is possible, I dont think the average Joe is disciplined enough to learn all of these things on their own without the help of a professional. For the most part,, the problem is NOT the school system. The problem is in the people teaching us and our kids in school! Not most, but many schools have teachers with poor/terrible qualifications! Poor families living in poor cities tend to remain poor and don’t do well academically and financially, while rich cities with families that are well-off tend to do better in life. The reason is because well qualified teachers teach in schools that pay well – mostly in rich cities! So, if poor cities are able to attract well qualified educators, then poor children in poor cities can receive higher quality education (or at least on par) and may have a better chance of getting out of poverty as adults rather than being trapped in a vicious cycle.
I Don’t need a Car because I Live in New York City Wich have a good Mass Transit System, also I use over the Air Broadcast TV which is Free, My Phone is a Cat S60 Tough Military Phone, Not a Cheap I Phone that Break Easy, I Invest 25% of My Income Using Acorn, the was I Save and Spend on Thinks that I Need,
This article not only fails to state the obvious of the impact of systemic oppression, which can be the detriment to any mindset, but continues to propagate it. Please explain to me why black men and boys are drawn when discussing habits of the so call “poor” and yet for “good” habits of the rich, white men and boys are drawn. Unbelievable, yet not surprising. It costs nothing and worth everything to be anti-racist.
one of the things that i noticed they teach them, normal people dont from my life, and prespective is that: when your a kid, everyone tells you work hard, and you gonna make money, which is not really true, alot of people work harder then others for what they want and still wont get it! thats for the normal people! now for the rich people, they tell something their kids normal people dont, its that, ” its money, that makes money”! the richer you are, the more money you actually make! its the world we live in, notice how the richer 1% made billions from the pandemic, and for everyone else? its a nightmare! i think norman people have nothing to offer beside hard work, that why they tell this to their kids!
Was drinking water and spit it out when I saw that when the artist describes the man who “wastes his money on things that make him look good,” it was the first appearance of a black man in this sketch. Then went on to watch the entire article, only to learn that a black man NEVER APPEARS AGAIN. Yup…So subtle, but present everywhere. Good info though.
There’s one very BAD example in the article and all these teachings. House where we live is not necessarily a liability, but I do agree, it’s neither an asset. Until the costs of living in an own house is less than renting, then there’s some extra money someone can spare (which you can invest). There are other factors as well, like commuting, but even so, having roots is not a bad thing! Also owning a house means also conserving money, not being hit by inflation + usually prizes of properties and homes tend to rise! Also until mortgage interest is low, you can even lend cheap money to invest (including risks).
13:37 Well, let’s see. Henry Ford was a total slaver. Talented, no doubt, but a slaver with a slaver mentality. Jobs leveraged on other people’s talents and did not give them what was due. He went on to get rich on thier talent and paid them the equivalent of scraps for what they helped him accomplish which would be otherwise impossible for him alone. Oprah, well, she’s a business woman and makes investments, I just don’t know on what, so I really can’t say anything about her. My point is the rich don’t generally help people; if anything they feel above the rest and exploit them whether in their businesses or as customers, both which would make their wealth impossible. If anything the rich do strive to keep others poor, my opinion if you will, but generally true.
Instead of thinking about money and what you can buy with it, think about what you’re doing to this beautiful planet called Earth. Stop treating it like a rubbish dump; stop killing off nature so that you can have a nice big house built; stop buying fast cars so that you can drive on flooded roads that cover the land where rain water is supposed to soak into.
This felt very culturally specific and glossed over that everyone earning $6000 a month is rich. Not everyone has that opportunity, and not everybody can choose to create that opportunity for themselves. It felt quite out of touch with most people’s lives in that sense. It was more about how some rich people get richer. Obviously it’s good to avoid wasting money, but the world does have finite resources. You can print more money, but then everything costs more. If some people get very rich it is directly at the expense of other people having less.
Why buy a car that costs you $500 a month? Why not just save up money and buy whatever card you can pay cash for? I realize there is an argument for having an offsetting asset with a higher rate of return than the interest on the car. But there is some utility to not having to pay the payment, also. If you pay cash for it, you may end up spending less. Of course now, with the supply chain crisis, used vehicles are not depreciating the way they used to.
So, I if a person needs a car to get to work and a typical quality used car loan in my region can be $500 a month. This person should save up around 50K to be able to make their monthly car payment off the interest from their savings. Well, obviouly these are lessons for rich kids. All they need to do is borrow mommie’s BMW while they save up to have a bank account big enough to cover a car payment with the interest. Also, Bill Gates reported he was leaving his kids $10 million, hardly a minuscule amount.
The rich people are to always learn off the poor people from the poor people to not bitch and complain from their many controlling of emotions and thinking to create their great survival skills from the poor people’s of many controlled mind states of survival from no bitching and complaining from their very strong mind determination of adaptability
My best friends grandfather worked so hard all his life built a business from the ground up, invested to rental properties and made a comfortable life. He gifted her and her brothers all a property bought outright no mortgage. Everyone of them despite this is up to their eyes in debt, has no savings and no money ever! I would love to give my child that start in life and would be so disappointed if he didn’t use it to better himself.
If you earn 6,000/mo, that yields 72,000/yr GROSS. You will not have 36-40,000 after one year of saving. You will only have about 57k GROSS post-taxes from which you have your entire year’s expenses to account for. You might have 20,000 saved if you lived like a pauper for the year. @4:40 makes no sense. Poor people spend their money, while rich people spend income from their assets? This income immediately becomes the rich person’s money before he can spend it, you know. Also, if your asset can net you an add’l $500/mo, you probably had a massive outflow of capital at some point. To earn that extra $500/mo, simply already own a spare $200,000 house where you do not live. Oh, is that all? Kiyosake’s presentations use horribly inaccurate numbers, his 4-quadrant summary is laughable (check the numbers he gives), and nearly everyone already knows 99.9% of what he claims are his great secrets. He may as well call himself Fred Lam for how transparent he is.
I got really tired of the same example that is not completely true. Here is a Question regarding the example in section #2: Teach the difference between assets and liabilities. I am buying a house (fully paid for) where I am living. Yes, I have to invest in it to make it usable including renovating it, pay yearly taxes, etc. The yearly rent vs expenses, taxes, etc for the house is in favor of the house. (positive cashflow in favor of the house buying) Is this considered a liability?